Short And Long Term Stock Market Investments
Investing during a transitional economy is risky. Investment options that were presented as secure a year or two ago are not now and there is a need for clever planning and preparation in order to spread ones risk in investments and saving.
With the stock markets being fluctuating the way they are these days many investors are not clear on what is the best approach to investing. The two basic approaches are the conservative and the aggressive strategies and while both can be fruitful the question is which one will produce the best results in market conditions like these.
The most commonly known type of aggressive investor is the day trader. Day trading means that the investor functions in a short time frame by buying and selling their investments in short intervals and sometimes many times in a single day.
The investors who prefer to buy and hold their stocks are the ones that take less of a risk when it comes to investing. In order to be such an investor you need to do a fair amount of research and learn about the stocks and companies you buy.
Varying your investments as well as your investment strategies is essential in making the most out of investing during turbulent economic times. The more you spread your risk between investments and investment strategies the better chances you get to avoid the economic turbulence.
Day trading can be both profitable and risky. It can be profitable because a day trader can see returns almost instantly and even during bad economic times by investing in penny stocks and on a regular sometimes daily basis. On the other hand this process is not cost effective in terms of fees and it an approach that requires constant monitoring and work.
Long term investors on the other hand dont really have to be on the lookout all the time, they buy and hold. This strategy involves much less stress than the day trading approach. The problem with long term investing is that it is difficult to jump out of an investment if it goes south. - 23196
With the stock markets being fluctuating the way they are these days many investors are not clear on what is the best approach to investing. The two basic approaches are the conservative and the aggressive strategies and while both can be fruitful the question is which one will produce the best results in market conditions like these.
The most commonly known type of aggressive investor is the day trader. Day trading means that the investor functions in a short time frame by buying and selling their investments in short intervals and sometimes many times in a single day.
The investors who prefer to buy and hold their stocks are the ones that take less of a risk when it comes to investing. In order to be such an investor you need to do a fair amount of research and learn about the stocks and companies you buy.
Varying your investments as well as your investment strategies is essential in making the most out of investing during turbulent economic times. The more you spread your risk between investments and investment strategies the better chances you get to avoid the economic turbulence.
Day trading can be both profitable and risky. It can be profitable because a day trader can see returns almost instantly and even during bad economic times by investing in penny stocks and on a regular sometimes daily basis. On the other hand this process is not cost effective in terms of fees and it an approach that requires constant monitoring and work.
Long term investors on the other hand dont really have to be on the lookout all the time, they buy and hold. This strategy involves much less stress than the day trading approach. The problem with long term investing is that it is difficult to jump out of an investment if it goes south. - 23196
About the Author:
Developing an investment strategy can be tricky. Getting the right advice is essential in developing a solid investment strategy. Speaking to an Investment Adviser is very significant and if you live in Toronto you should find an Investment Adviser Toronto.
posted by X - Men @ 8:11 AM
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